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CONNECTING OUR GLOBAL CATERPILLAR FAMILY TODAY SPRING 2015

Caterpillar One of Top- Where in the World... Scoring Companies in Spotting Caterpillar Around the World The Sustainability Yearbook

Not only was Caterpillar named to the Dow Jones Sustainability Index last year, it also received the Industry Mover distinction for excellent sustainability performance. The Sustainability Yearbook is the world’s most comprehensive publication on corporate sustainability. To be listed in the Yearbook, companies must be within the top 15 percent of their industry and must achieve a score within 30 percent of their industry leader’s score. Furthermore, within the top 15 percent of each industry, the company that has achieved the largest proportional improvement in its sustainability performance compared to the previous year is named the RobecoSAM Industry Mover. Caterpillar is proud to 930K at Coronado Beach, California be honored with this distinction.

We’ve taken up a new call to use predictive diagnostics platform for MESSAGE FROM DOUG action: Think inside and outside our products. the machine. We know what it Think about how our industry will HELLO means to think inside the machine, change when customers have mobile, and we have a 90 year history of easy-to-use, diagnostic information that EVERYONE! innovations like the diesel engine, lets them shift from a reactive “repair We kicked-off 2015 by the elevated sprocket, autonomous after failure” mode to a proactive “repair ramping up our historic mining trucks and dynamic gas before failure” stance. tradition of leading industry blending to show for it. The Uptake agreement, along with even innovation. In February, our “We have the best Today’s competitive marketplace more internal innovation, demonstrates leadership team gathered engineers and and the great opportunities that exactly how we intend to disrupt our in Atlanta for our annual innovators in the exist in the Internet of Things industry, and how we are moving quickly Leadership Summit. For three business, and they mean we are also thinking outside to prevent traditional or non-traditional days we talked and learned are getting it done the machine—about using data competitors from coming between us and about the amazing changes every day. ” analytics and big data to provide our dealers and customers. ahead in technology and what new services and products our We have the best engineers and they mean for Caterpillar. We also had our customers want and need. Along those innovators in the business, and they are first “Innovation Expo” where some of our lines, we signed a technology and getting it done every day. I am incredibly most creative colleagues demonstrated predictive analytics agreement with excited about what this more than 20 innovative products and Uptake, an entrepreneurial Chicago means for our customers approaches that will help shape our future. company that will develop an easy-to- and our future!

Caterpillar Announces Grand Opening of First Data Innovation Lab

In today’s age of the opportunities this technology, data touches lab—and forthcoming labs everyone and drives in global locations—will progress across the globe. provide. At Caterpillar, Data Shocking amounts of data Innovation Labs will lead are generated every day to faster, better and more from each sale, GPS point, efficient innovation than social media post, web ever before, allowing the search and countless other company to deliver even sources all over the world. better results to customers. We’re in the midst of a With high-velocity global data revolution, and analysis of Big Data, companies that understand research and development and leverage the value of professionals can tap into Big Data will be the ones insights about customers’ to succeed. current and future needs, While Caterpillar has opportunities to optimize always been a company Caterpillar’s processes and that places a premium global trends that drive on data-driven decision At Caterpillar, Data Innovation Labs will lead to faster, better and more efficient innovation technological change. making, we’re upping our than ever before, allowing the company to deliver even better results to customers. Staffed with world-class game. February 19, we talent from critical fields celebrated the grand opening of our first Data Innovation Lab, (statistics, computer science, operations research, engineering, located in Research Park at the University of Illinois (U of I) in etc.), the labs will also tackle experimental and high-risk challenges Champaign, Illinois. that standard practices can’t address, allowing the company to The U of I Vice Chancellor for Research, Dr. Peter Schiffer, and identify and explore breakthrough and disruptive opportunities Caterpillar Vice President and Chief Technology Officer, Gwenne through data analysis. Henricks, welcomed guests at the grand opening, both expressing At the grand opening, Henricks summarized, “This lab will foster excitement about the lab as another positive link in the long and rich real-world innovation at the dynamic intersection of technological relationship between the university and Caterpillar. Dr. Schiffer said, and cultural change in the world, giving us the ability to turn customer “Caterpillar has been a tremendous partner with the U of I. Ours is and market data into valuable information for the growth of our a strategic relationship that helps drive success at our respective business and our customers’ businesses.” institutions. The Research Park is a natural fit for a tech-focused This grand opening is only the beginning. Caterpillar will be company like Caterpillar, and this new innovation lab will leverage launching more labs in global locations, harnessing the power of Illinois strengths in computing and data analysis in exciting ways.” worldwide analytics expertise and tapping into data-driven insights Henricks echoed Dr. Schiffer’s thoughts and went on to explain that propel success.

CATERPILLAR NAMED A TOP 50 COMPANY IN ROBOTICS Robotics Business Review (RBR) unveiled its fourth annual RBR50 list, naming Caterpillar one of the most noteworthy companies in the global robotics industry for 2015. The RBR is the largest, most comprehensive online robotics news and information resource. Companies listed on the RBR50 are selected based on their innovations, groundbreaking applications, commercial success and potential, and represent many different levels and facets of the robotics ecosystem. This international compilation spans 11 countries and in addition to the large conglomerates, 20 percent of the list is comprised of lesser-known startups. The RBR50 list is dynamic, with robotics companies entering and leaving on an annual basis, thus creating a list that is indicative of where the global robotics industry as a whole is headed. Other companies on the list include Boeing, Lockheed Martin, Komatsu and Google. “Caterpillar has long recognized the value robotic technologies can bring to our customers when integrated into our products and solutions,” said Lou Balmer Millar, director of Research and Advanced Engineering. “Being named one of the top 50 companies in the global robotics industry is great recognition of our successful history of innovation, as well as the commercial success of our semi-autonomous and fully autonomous products and features.” For the full list of companies on the RBR50 List, http://roboticsbusinessreview.com/rbr50.

2 SPRING 2015 CATERPILLAR PRIDE: Panama Employees Showcase Company Pride in Local Communities From Strains and Sprains to Improved Ergonomics When thinking about work-related injuries, sprains and strains may not come to mind. But for Caterpillar’s Material Handling & Underground Division in East Peoria, Illinois, (MH&U-EP) identifying poor ergonomics was a major issue. “We identified that 25 percent of all first aids and 50 percent of all recordable injuries were related to sprains and strains,” said environmental, health and safety (EHS) professional Josh Labeda. “We realized Kim Hauer, Vice President of Human Services Division, handing out gift bags at the we weren’t doing the Caterpillar Panama Family & Friends Weekend best job proactively We’re already seeing identifying or managing people capitalize on these The Panama Caterpillar Facility recently hosted the first Family & Friends ergonomic risk.” tools and identify the risks Weekend, providing an opportunity for employees to showcase the facility and A multidisciplinary and appropriate abatement. share the Caterpillar brand and culture with family and loved ones. 6 Sigma team made up “This event was key to increasing our brand visibility throughout the of EHS, workers compensation, medical, engineering, Panama communities, as well building a sense of pride in our employees by logistics and production employees spent a year showcasing what a great place to work Caterpillar is,” said Sue Parcells, Panama HR manager, HSD. examining the facility’s processes and injuries. The highlight of the event was the They consulted Dr. Don Bloswick, an expert and Cat® Product Demo Show in the professor in engineering and occupational therapy at Demonstration Learning Center. For many the University of Utah. Led by 6 Sigma Black Belt Karla Panama employees, this was the first time Lowery, the team’s next steps were examining they had the opportunity to see the action- daily work, conducting surveys and using packed demonstration. comprehensive ergonomic assessment tools to The Cat machines displayed their strength pinpoint and analyze risk. and the tasks they are each built to perform for our customers every day. “Our goal is to identify issues before they The audience was engaged and energized by the memorable event. cause problems,” Labeda said. “Our new tools The two-day event was also filled with family-oriented entertainment, have more power in providing direction and including a children’s playground, energetic sports competitions, a photo appropriate abatement.” booth and a 9D Cinema Truck. In addition, the event included a center The team piloted a new process in the large stage for an employee talent showcase and musical performances from tractor assembly area, where there was the highest two local bands. ergonomic risk. Following the pilot, there have been “Being able to show my family a small part of my day-to-day work and zero recordable injuries in that area. share with them what it’s like to have ‘Yellow Blood’ was an incredible “The pilot was very interactive,” Labeda said. experience,” said Sharon Campos, process support rep. “We all had a “The team was on the shop floor taking video and great time and I cannot wait for the next family event.” looking at things up close. We tried out tools with the engineers and the production employees. We weren’t just sitting and looking at numbers.” Following the pilot, the ergonomic risk assessment tools that MH&U-EP developed were added to the global ergonomics toolbox, and Global EHS has begun to train other facilities to use the tools. The project recently won one of two Ergonomic Excellence Platinum Awards, the highest distinction awarded by Global EHS. “I think other facilities will see the same gains we have,” Labeda said. “We’re already seeing people capitalize on these tools and identify the risks and appropriate abatement.” From left to right: Abiel Chevannes, Jon Nightingale, Chris Yates and Carla Navarro

Caterpillar.com > Company > Employees & Retirees 3 Employees Connect Students Worlds

Apart Using Technology Flanagan, Illinois

Two separate schools…worlds apart… 28 computers Peoria each one striving to improve their classroom with standard environments have come together, thanks classroom to a group of volunteers from Global functionality and East Peoria, Illinois, Track-type tractor Nairobi, Information Services (GIS) and Business systems. As the Valor Kenya engineering center and assembly Systems Transformation (BST). initiative took root, the operations, and the Caterpillar Visitors Working with the Valor Junior/Senior High volunteers discovered how GIS, Center in downtown Peoria, Illinois. School—which is part of the Salem4Youth Human Services, Caterpillar Production “For these inquisitive students, it was a Ranch for at-risk teenage boys located just System (CPS) and various other divisions great opportunity to share the good work outside of Flanagan, Illinois—and the REM and business partners located in EAME were of Caterpillar and its affiliates, and to open School serving six areas of Nairobi, Kenya. partnering with the Cat® dealer, Mantrac, students’ minds to possible careers at Caterpillar volunteers used computer and in Nairobi to support the REM School. Caterpillar,” said BST volunteer Terry Keith. video conferencing technology to link two Work began in February 2014 and Intertwined in their separate Caterpillar classrooms to not only different cultures but by the following September, plans and tours, the Caterpillar team set up a also to possible Caterpillar careers. arrangements had been made for a 90-minute conference call with video feed Efforts began in January 2014 as GIS one-day, same-day student event. As the between the two worlds for students to volunteers assisted Salem with a computer REM students visited the Mantrac facility, exchange experiences, ideas and cultures systems upgrade. Volunteers setup the Valor students visited Caterpillar’s with each other. Support • Teaming with other contributors, Caterpillar supported the long-term relationships with the 11 Kenyan teachers and 260+ students. REM schools (pre-school through eighth grade) for • Receive basic school supplies, educational tools and technology for improving classroom effectiveness. REM The extended classroom assets include eight laptops, an office printer and Internet access for up to five computers. GIRLS BASKETBALL AT CATERPILLAR Within its first 10 years as a company, Caterpillar offered both men’s championship and women’s intramural sports. Starting in the mid-1930s, several teams— women’s intramural plant teams were formed, including a basketball the Caterpillar team. After a few years, Caterpillar selected one team to play in the Girls, later named local Proctor League that featured other female teams from businesses the Caterpillar like the Peoria Star, Hiram Walker, Ideal Troy, Peoria Journal Transcript, Dieselettes. LeTourneau, Gipps and Keystone. The Caterpillar team would first be Applegren actually known as the Caterpillar Girls. left Caterpillar in 1941-1942 Caterpillar Dieselettes Basketball Team. The Caterpillar Girls won several league championships—including 1943 to play for the Caterpillar Inc. Corporate Archives 1938 and 1939—and placed high in other years. In the 1937-1938 season in the girls’ record was 15-1. They were 22-5 in the 1943-1944 season. the National Women’s League. The Peaches were featured in Popular with Caterpillar employees, it was reported that 800 people the popular movie, . attended one of the Caterpillar Girls’ games in the 1939-1940 season. Practices and games were held in various local junior high and high JUST OPENED... Visitors school gymnasiums. to the Caterpillar Visitors In addition to playing teams in the local league, the Caterpillar Girls Center will see never- also played games against teams from other cities in Illinois, Missouri, before-seen artifacts and Iowa and Indiana. In some cases, the Caterpillar Girls would play game films featuring the opener games before the Caterpillar Diesels men’s basketball team. world’s longest consecutive- In the 1940-1941 season, the team’s name changed from Caterpillar running women’s softball Girls to the Caterpillar Dieselettes. team—the Caterpillar It was common for the players to participate in several different Dieselettes, which later company-sponsored sports. For example, Irene “Amy” Applegren, became the Sunnyland Rosie Fisher, Frances Morlock, Norma Humphries, Eleanor Lettes and, finally, the Rudolph, Marie Wadlow and Sid Esslinger all played on Caterpillar’s Pekin Lettes.

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4 SPRING 2015 Caterpillar.com > Company > Employees & Retirees